RBI releases a new circular making payment for the NRI’s easier

Good news for the Non Resident Indians who want to pay their housing loans in the Indian currency through their relatives. In the recent declaration Reserve Bank of India has allowed resident Indians to repay housing loans in the Indian currency (rupee) on behalf of their relatives residing abroad. These people would include NRI’s and PIO’s (People of Indian Origin).

In a notification the Apex Bank quoted: “It has been decided that where an authorised dealer (bank) in India has granted loan to a non-resident Indian, such loans may also be repaid by resident close relative of the NRI by crediting the borrower’s loan account through the bank account of such relative.”

The facility has been made available for the individuals but this repayment opportunity is available only for housing loans and not for any other form of loans.

RBI has also released another circular in which it has allowed the residents for paying their medical expenses for the relatives who are non residents at the time they visit India. According to earlier circular a resident was only allowed to pay bills for their NRI relatives in respect to lodging, food, travelling to and from India. They were also entitled to pay the travelling expenditure within the country for their NRI kins.